📈 Perplexity’s $8B Leap

Good morning.

⚡ The Fast Five → Boeing workers vote on deal, Oil rises after weekend attack, Housing prices continue rise, Britain could face tech exodus, Perplexity AI seeks funding

And now…

⏱️ Your 5-minute briefing for Monday, October 21, 2024:

MARKET BRIEF
Before the Open

Pre-Market

Fear & Greed

Trends

Markets Hit Record Highs

Markets in Review:
On Friday, the Dow Jones and S&P 500 hit record highs as Netflix (NFLX) surged, while Nasdaq rose 0.9%. U.S. stock futures opened steady Monday, with Boeing (BA) in the spotlight.

The Big Picture:
Netflix’s blowout earnings and subscriber growth pushed its stock up 16%, boosting broader tech. But looming earnings from major players like Apple (AAPL), Microsoft (MSFT), and Boeing could determine market momentum this week. Meanwhile, Boeing faces headwinds, announcing job cuts amid costly work stoppages.

With inflation cooling and the Fed expected to pause rate hikes, the stage is set for bullish sentiment. But the spotlight will be on corporate profits to justify current valuations.

Why it matters:

• Tech dominates: Big names like Netflix are leading the charge in growth sectors.

• Boeing’s restructuring: Job cuts and financial strain are dragging on BA, a key indicator of industrial health.

• Earnings on deck: Major banks, Tesla (TSLA), and tech giants are up next—critical for Q4 outlook.

Go deeper:

• Bank earnings: Can Bank of America (BAC) and Citigroup deliver strong results?

• Tech resilience: Will earnings from Apple and Microsoft maintain the bullish wave?

What they’re saying:
"We’re cautiously optimistic heading into Q4, but corporate profits must meet expectations to sustain these levels," noted one analyst.

WHAT WE’RE WATCHING
Events

• Thurs. Oct. 24: Dept. of Labor - Unemployment Claims, 8:30AM

• Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy.

Earnings Reports

• Today: SAP, Nucor, Logitech

• Monday: GE Aerospace, Verizon, Phillip Morris, Texas Instruments, Lockheed Martin, Fiserv, RTX, 3M, Spotify, GM

MARKET BRIEF
Leading News

AI Startup Perplexity’s $8B Leap

Why it matters: Artificial intelligence continues to fuel explosive growth in tech valuations, and Perplexity AI’s rapid ascent shows that savvy investors can't afford to ignore this trend.

The big picture: Perplexity AI, an emerging player in the AI-driven chatbot space, is in talks to raise a new round of funding that could value the company at over $8 billion—more than doubling its worth in just a few months. The AI sector is on fire, with companies like OpenAI (backed by Microsoft) and Anthropic (supported by Google) leading the charge, and Perplexity is angling to be next in line.

Backed by Jeff Bezos, Perplexity has positioned itself as a leader in conversational AI, targeting industries that rely heavily on search and customer interaction. With the broader AI market projected to hit $1.6 trillion by 2030, investors are locking in early bets, hoping to ride the wave of this technological revolution.

Key points:

• Valuation surge: Perplexity AI’s valuation jumping to $8B reflects growing demand for AI solutions in everyday business operations, from chatbots to personalized search engines.

• Investors piling in: Leading VCs and tech giants are battling for stakes in AI startups, signaling a cascade effect on valuations across the sector.

• Bezos' involvement: Jeff Bezos backing Perplexity adds credibility and strategic insight to the company, potentially positioning it to compete with giants like OpenAI.

Go deeper:

• Conversational AI's potential: Industries like financial services (think Morgan Stanley) and e-commerce (Amazon) could see disruption as AI-enhanced chatbots replace traditional search and customer service tools.

• Scalability: Investors are betting on the scalability of AI platforms, seeing conversational AI as the next frontier after cloud computing and blockchain.

• Blockchain: Blockchain and AI are converging, with decentralized AI systems offering potential in areas like data security and DeFi.

What they’re saying: “This is just the beginning for AI-driven search. Companies like Perplexity are going to change the way we interact with information,” says a top Silicon Valley investor.

The bottom line: Perplexity AI’s rise is a bullish signal for the broader AI sector. With Jeff Bezos in its corner and valuations climbing, investors may want to keep this company on their radar as AI continues to transforms the tech landscape.

Headlines

• Oil Rises as Israel Plans Next Iran Move After Weekend Attack (link)

• Inflation hasn’t been defeated yet because the housing crisis could bring it back (link)

• Boeing workers to vote on new wage deal that could end strike (link)

• Healthcare Sector Leads Drive Toward the ‘Embedded Everything’ Economy (link)

• Britain faces warnings of a tech exodus over tax plans ahead of high-stakes budget (link)

• The Starship Revolution In Space (link)

• Dronemaker DJI sues Pentagon over Chinese military listing, alleges significant financial harm (link)

CRYPTO
Fear & Greed

Headlines

• SEC Greenlights Bitcoin Options ETFs for New York Stock Exchange and CBOE (link)

• Bitcoin Is Up 53% This Year, But This Cryptocurrency Is Doing Even Better (link)

• Stripe acquires stablecoin platform Bridge for $1.1 billion in crypto's largest acquisition (link)

DAILY SHARE
On the Socials